Toga Hotels changes name to Toga Far East Hotels after $450m Singapore JV

FRESH from signing a $450 million joint venture deal with its new Singapore partner, one of the country's oldest family-owned hoteliers, Toga Hotels, changed its name yesterday to TFE Hotels (Toga Far East Hotels) in a bid to promote its new co-ownership status.

Launched in 1963 by the Sydney-based Vidor family, the Toga Group had amassed 57 hotels before recently signing a 50-50 joint venture with Singapore's cashed-up Far East Hospitality Group.

Billed as the island state's largest serviced apartment owner, Far East Hospitality controls 18 hotels under brands including Quincy, Oasia, Rendevous, and Village Hotels.

Yesterday, the Australian and Asian hotel giants announced the name change in a bid to further cement the partnership.

The plan is to pick up hotel management agreements and purchase properties primarily in Australia and New Zealand, building on the more than 65 hotels covering more than 9000 rooms the joint venture already controls as an owner or operator.

Further expansion in Europe may follow given the newly merged group already operates seven hotels on the continent in Denmark, Hungary and Germany including Adina Apartment Hotels in Frankfurt.

"Partnering with Far East Orchard provides us with a strongly capitalised and highly reputable partner allowing TFE hotels (the joint venture) to confidently pursue the growth opportunities available," Allan Vidor, managing director of the Toga Group, which owns 50 per cent of TFE Hotels, said in a statement to The Australian yesterday.

TFE chief executive Rachel Argaman said the deal "has given us a strongly capitalised, highly reputable partner who allows the joint venture to confidentially pursue growth opportunities".

Ms Argaman said the new company branding would not affect any of the hotel consumer brands.

"If we buy a 3 1/2-star hotel it will be branded a TraveLodge; a four-star property would be a Vibe and a 4 1/2-star would be a Rendevous. An apartment hotel would be an Adina, whereas any serviced apartments would be run as Medina Serviced Apartments."

Ms Argaman said the group was seeing renewed strength and strong occupancies from the Australian corporate sector.

"With the falling of the Australian dollar our international forward bookings are very strong, and we are seeing a strong rebound from the European inbound market also.

"The falling Aussie dollar also means there will be fewer Australians travelling overseas and they will holiday at home."

The company is expanding the 26-room Kurrajong Hotel in Canberra to 147 rooms.

The hotel will be branded Hotel Kurrajong.

It is building a Vibe Hotel in Marysville, Victoria, and next year will open Adina Apartment Hotels in Mascot and Randwick.

It is also adding a second hotel in Frankfurt, an Adina, at the Messe Convention Centre.

TFE Hotels has three properties in Berlin, one in Hamburg as well as the properties in Frankfurt.

Source:  The Australian - 14 March 2014